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Purpose This research study examines the impact of social and governance initiatives on financial performance of global banks. The study is significant in the context of massive changes in regulations, government policy, social attitudes and market development attributed to banking sector. Design/methodology/approach The source of data for this study was ESG database of Thomson Reuters. The study was based on 472 global banks. The research paper uses two-stage least square model and the study covered the five-year period 2015–2019. Findings Banks with high intensity of social and governance-related activities have positive market-based valuation effects. Adequately capitalized banks tend to invest more in social initiatives. Banks' governance initiatives directed toward the use of anti-takeover defensive mechanisms are skeptically perceived by markets. Riskier banks tend to have less investments in social initiatives. Research limitations/implications The findings are relevant in the context of expectations from policymakers, consumers and investors with respect to the role which banks ought to play in funding the development of a sustainable economy. The research finding that strong governance and social initiatives by banks are value-enhancing measures is a clear evidence of the significance of ESG initiatives as value-creating mechanisms as perceived by markets. Originality/value This study addresses the gap in the research, which examines the role of governance and social initiatives on value creation in the banking sector firms. The study examines the impact of different elements of governance and social initiatives on financial performance of banks.
Rajesh Kumar Bhaskaran; K.S. Sujit; Saksham Mongia. Linkage between performance and sustainability initiatives in banking sector–An empirical examination. International Journal of Productivity and Performance Management 2021, ahead-of-p, 1 .
AMA StyleRajesh Kumar Bhaskaran, K.S. Sujit, Saksham Mongia. Linkage between performance and sustainability initiatives in banking sector–An empirical examination. International Journal of Productivity and Performance Management. 2021; ahead-of-p (ahead-of-p):1.
Chicago/Turabian StyleRajesh Kumar Bhaskaran; K.S. Sujit; Saksham Mongia. 2021. "Linkage between performance and sustainability initiatives in banking sector–An empirical examination." International Journal of Productivity and Performance Management ahead-of-p, no. ahead-of-p: 1.
Purpose The current study proposes an integrative framework for examination of determinants of stock returns in US market based on the five-factor Fama and French (FF) model, macroeconomic variables and investor sentimental factors. The study is based on both value weighted and equally weighted monthly portfolio returns of all CRSP firms which are incorporated in the United States and listed on the NYSE, AMEX or NASDAQ. Design/methodology/approach The study applies PLS-SEM methodology to examine the major determinants of portfolio return. Findings The study suggests that investor sentiments are the major driving forces which positively influence the portfolio stock returns. The macroeconomic factors, the FF Factors and Momentum factor have negative influences on portfolio stock returns. Originality/value The study is the first of its kind which aim to determine the determinants of portfolio returns using the PLS-SEM methodology.
Rajesh Kumar Bhaskaran; Sujit Kovilathumpaday Sukumaran. Empirical examination of an integrative model for asset pricing – evidence from US market. Review of Behavioral Finance 2021, ahead-of-p, 1 .
AMA StyleRajesh Kumar Bhaskaran, Sujit Kovilathumpaday Sukumaran. Empirical examination of an integrative model for asset pricing – evidence from US market. Review of Behavioral Finance. 2021; ahead-of-p (ahead-of-p):1.
Chicago/Turabian StyleRajesh Kumar Bhaskaran; Sujit Kovilathumpaday Sukumaran. 2021. "Empirical examination of an integrative model for asset pricing – evidence from US market." Review of Behavioral Finance ahead-of-p, no. ahead-of-p: 1.
This study aims to explore the influence of brand value on firm performance and shareholder wealth creation. This study is based on the top 100 brands ranked by Interbrand. This research article analyses the impact of brand value on firm performance both in terms of stock market performance and operating performance. This study uses panel regression data to understand valuation effects of brands. The results suggest that firms with superior operating performance have higher brand valuation effects. Higher brand valuation is a significant determinant of profitability. Brand quality leads to improved cash flow on account of the likelihood of repurchase. This study establishes the negative relationship between agency conflicts and brand value. The results support the belief that a marketer’s efforts on brand investments are a significant source of value-creating activity.
Rajesh Kumar; K. S. Sujit; K. A. Waheed; Manuel Fernandez. Are Brand Value and Firm Value Related? An Empirical Examination. Global Business Review 2021, 1 .
AMA StyleRajesh Kumar, K. S. Sujit, K. A. Waheed, Manuel Fernandez. Are Brand Value and Firm Value Related? An Empirical Examination. Global Business Review. 2021; ():1.
Chicago/Turabian StyleRajesh Kumar; K. S. Sujit; K. A. Waheed; Manuel Fernandez. 2021. "Are Brand Value and Firm Value Related? An Empirical Examination." Global Business Review , no. : 1.
The study analyzes the impact of macroeconomic, governance and risk factors on foreign direct investment (FDI) intensity with respect to the US market during the period 1960–2019. The study adopted regression methodology. The FDI, macroeconomic and risk data were sourced from the Federal Reserve Economic Data (FRED) database. The governance data were collected from the World Bank Governance Database. The study suggests that infrastructural investments lead to higher FDI. A stronger Euro leads to higher FDI activity in the United States. Research & Development investments is a significant factor which contributes towards enhanced FDI activity. The higher the corporate profitability, the greater the FDI inflows. Exports and imports are significant factors which determine FDI in markets like USA. Inflation has a negative impact on FDI flow regulations, which are aimed to promote private sector development is negatively related to FDI intensity. FDI activity by firms tend to be lower when corruption levels are higher in the country. The higher the governance perception in terms of voice and accountability of citizens, the greater the propensity to attract FDI. The perception of the effectiveness of a government’s commitment towards the quality of public and civil services is directly related to FDI investment.
K. S. Sujit; B. Rajesh Kumar; Sarbjit Singh Oberoi. Impact of Macroeconomic, Governance and Risk Factors on FDI Intensity—An Empirical Analysis. Journal of Risk and Financial Management 2020, 13, 304 .
AMA StyleK. S. Sujit, B. Rajesh Kumar, Sarbjit Singh Oberoi. Impact of Macroeconomic, Governance and Risk Factors on FDI Intensity—An Empirical Analysis. Journal of Risk and Financial Management. 2020; 13 (12):304.
Chicago/Turabian StyleK. S. Sujit; B. Rajesh Kumar; Sarbjit Singh Oberoi. 2020. "Impact of Macroeconomic, Governance and Risk Factors on FDI Intensity—An Empirical Analysis." Journal of Risk and Financial Management 13, no. 12: 304.
This study examines the impact of firms’ environmental, social and governance (ESG) initiatives on financial performance. It also compares the valuation effects of corporate social performance initiatives in developed and emerging market firms. The study was based on ESG ranking scores in the Thomson Reuters database, and the sample comprised 1317 emerging market firms and 3569 developed market firms. In comparison with developed market firms, emerging market firms had higher ESG combined scores, ESG Controversy scores, category scores of resources use, workforce, human rights and corporate social responsibility strategy scores. This study finds that stakeholder initiatives positively impact valuation effects, based on all sample results. Firm-generated controversies may decrease valuation effects in the stock market. Results indicated that ESG initiatives have a significant positive to the firm performance. The presence of independent board members and ownership by investors is a positive determinant for value creation. The adoption of best practice corporate governance principles is an important determinant of the valuation of firms. Firms’ propensity to use defence mechanisms decreases valuation effects. Developed market firms received positive valuation effects due to ESG initiatives.
Irene Wei Kiong Ting; Noor Azlinna Azizan; Rajesh Kumar Bhaskaran; Sujit K Sukumaran. Corporate Social Performance and Firm Performance: Comparative Study among Developed and Emerging Market Firms. Sustainability 2019, 12, 26 .
AMA StyleIrene Wei Kiong Ting, Noor Azlinna Azizan, Rajesh Kumar Bhaskaran, Sujit K Sukumaran. Corporate Social Performance and Firm Performance: Comparative Study among Developed and Emerging Market Firms. Sustainability. 2019; 12 (1):26.
Chicago/Turabian StyleIrene Wei Kiong Ting; Noor Azlinna Azizan; Rajesh Kumar Bhaskaran; Sujit K Sukumaran. 2019. "Corporate Social Performance and Firm Performance: Comparative Study among Developed and Emerging Market Firms." Sustainability 12, no. 1: 26.
Purpose The purpose of this study is to broadly examine the role of marketing–finance interface factors for value creation. Specifically, the study investigates the influence of discretionary expenditures such as advertisement on valuation of brands and firms within the framework of risk factors. Design/methodology/approach To test the model and hypotheses of this study as it has the possibilities of multiple causations among different variables used in the system. Some independent variables are not truly independent and there is a possibility of biased estimation and inconsistent results. Hence a dynamic simultaneous equation model is used including the instrumental variable approach. Findings The study provides evidence for direct association between brand value and firm value which is represented by the joint impact of both operating and stock market performance. The results establish the direct relationship between brand and firm value and signify the relevance of intangible value creation. Originality/value This study addresses the gap in the research which examines the role of marketing decisions on value creation which jointly impacts both operating and stock market performance.
B. Rajesh Kumar; Sujit Sukumaran; Waheed Kareem Abdul. Brand valuation – examining the role of marketing on firm financial performance. Measuring Business Excellence 2019, 24, 90 -113.
AMA StyleB. Rajesh Kumar, Sujit Sukumaran, Waheed Kareem Abdul. Brand valuation – examining the role of marketing on firm financial performance. Measuring Business Excellence. 2019; 24 (1):90-113.
Chicago/Turabian StyleB. Rajesh Kumar; Sujit Sukumaran; Waheed Kareem Abdul. 2019. "Brand valuation – examining the role of marketing on firm financial performance." Measuring Business Excellence 24, no. 1: 90-113.
This article aims to determine the fundamental drivers of various relative valuation multiples in different industry sectors. It is based on a sample of 189 companies in seven industry sectors. Through regression analysis, the study identifies the determinant variables for the most widely used earnings, revenue, and book value multiples: P/E ratios, enterprise value to EBITDA multiple and price to book multiple. Additionally, we find that dividend payouts have different effects on valuation multiples in different sectors.
B. Rajesh Kumar. Determinants of Relative Valuation in Different Industry Sectors—An Empirical Study. The Journal of Wealth Management 2019, 22, 73 -85.
AMA StyleB. Rajesh Kumar. Determinants of Relative Valuation in Different Industry Sectors—An Empirical Study. The Journal of Wealth Management. 2019; 22 (1):73-85.
Chicago/Turabian StyleB. Rajesh Kumar. 2019. "Determinants of Relative Valuation in Different Industry Sectors—An Empirical Study." The Journal of Wealth Management 22, no. 1: 73-85.
This study examines the role of firm-level financial and operational characteristics in explaining the market valuation of oil and gas-based energy companies. Using panel data based on 82 major oil companies, the study explores the value drivers involved in value creation of integrated and independent oil companies. In other words, the study explores the impact of investment, financing, and dividend decisions on value creation in energy firms. The results suggest that stock market is skeptical about the risky capital expenditures undertaken by oil and gas firms. The study finds some evidence for signaling theory of debt financing, which suggests that the use of higher debt by energy companies is viewed positively by markets. Higher dividend payment is viewed negatively by markets. The enterprise value variable EVEBITA (Earnings Before Interest, Taxes, Depreciation, and Amortization) is positively related to share price with statistical significance. Higher profitability of oil firms leads to greater value creation for oil and gas-based firms. The higher the liquidity position, the greater the value enhancement of oil and gas firms would be. The study finds some evidence for the positive association of operating characteristics with market valuation of oil-based energy firms. Higher reserve replacement leads to higher valuation and is viewed positively by market analysts. This study aims to provide new insights into how financial and operational information relates to the market valuation of both independent and integrated oil companies. The identification of factors for value creation in stock market is critical for the design of effective policies for wealth creation. JEL classifications: G30, G31 Keywords: Market Valuation, Profitability, Reserve Replacement, Integrated Oil Companies
B. Rajesh Kumar; K. S. Sujit. Determinants of Value Creation in Oil and Gas Firms: A Firm-Specific Comparative Study Using Panel Data. Applied Economics Quarterly 2019, 65, 45 -69.
AMA StyleB. Rajesh Kumar, K. S. Sujit. Determinants of Value Creation in Oil and Gas Firms: A Firm-Specific Comparative Study Using Panel Data. Applied Economics Quarterly. 2019; 65 (1):45-69.
Chicago/Turabian StyleB. Rajesh Kumar; K. S. Sujit. 2019. "Determinants of Value Creation in Oil and Gas Firms: A Firm-Specific Comparative Study Using Panel Data." Applied Economics Quarterly 65, no. 1: 45-69.
The paper proposes the microeconomics concept of elasticity to estimate the SERVQUAL gap elasticity to derive important insights for service providers to develop the right strategies to bridge the overall gap in service. The dimensions of SERVQUAL adopted from Parasuraman et al. (1988) and Kumar et al. (2009) are first verified for their unidimensionality using SEM and reliability in the context of UAE banking industry. Further, the technique of dominance analysis is used to derive the relative importance of dimensions for different groups of banks. Finally, the stepwise log-linear regression models are used to estimate the gap elasticity to measure the responsiveness of the overall SERVQUAL gap to a change in customers’ perception on different dimension. The results reveal that the dimension which is prioritized as the most important dimension need not to be the one to be targeted under the resource constraint to react faster to the changes of customers’ banking behavior This is probably the first attempt to examine the service quality through gap elasticity. This method is especially useful when the traditional approach to measure relative importance of critical factors fails to clearly discriminate between two or more dimensions, which in turn may lead to failure in decision making to choose the right strategies to bridge the overall gap in the service.
Mukesh Kumar; Sujit Kovilathumpaday Sukumaran; Vincent Charles. Deriving managerial implications through SERVQUAL gap elasticity in UAE banking. International Journal of Quality & Reliability Management 2018, 35, 940 -964.
AMA StyleMukesh Kumar, Sujit Kovilathumpaday Sukumaran, Vincent Charles. Deriving managerial implications through SERVQUAL gap elasticity in UAE banking. International Journal of Quality & Reliability Management. 2018; 35 (4):940-964.
Chicago/Turabian StyleMukesh Kumar; Sujit Kovilathumpaday Sukumaran; Vincent Charles. 2018. "Deriving managerial implications through SERVQUAL gap elasticity in UAE banking." International Journal of Quality & Reliability Management 35, no. 4: 940-964.
B. Rajesh Kumar; K.S. Sujit. Determinants of dividends among Indian firms—An empirical study. Cogent Economics & Finance 2018, 6, 1 .
AMA StyleB. Rajesh Kumar, K.S. Sujit. Determinants of dividends among Indian firms—An empirical study. Cogent Economics & Finance. 2018; 6 (1):1.
Chicago/Turabian StyleB. Rajesh Kumar; K.S. Sujit. 2018. "Determinants of dividends among Indian firms—An empirical study." Cogent Economics & Finance 6, no. 1: 1.
This study aims to provide new insights into how the financial and operational information relate to the market valuation of both independent and integrated oil companies. Hence, the study examines the value drivers for value creation in oil firms. Specifically, it explores the effect of investment, financing, and dividend decisions on value creation in oil-based energy firms. It is important to identify factors for value creation in stock market to design effective policies for wealth creation. The study was based on 82 oil and energy firms selected based on average asset sizes and revenues during the 2009-2013 period. PLS SEM methodology was used to analyze the effect of various exogenous latent variables on the endogenous latent constructs of profitability and value creation. Higher earning potential was associated with greater value creation for oil firms. Markets view high capital investments by oil companies positively, as these investments represent value creation for oil and gas firms. Higher cash flows lead to greater value creation for energy firms, and they might lead to greater profitability and hence greater value creation. Dividend policy of oil and gas firms also determines the valuation of oil firms. Higher dividend payout enhances the value of oil and gas firms. Profitability determines value creation in oil and gas firms. The study did not find statistically significant differences between integrated and independent companies or between privatized national companies and private national companies in value creation among oil firms. Keywords: Valuation, Investment Policy, Financing Decisions, Market Valuation, PLS, SEM To cite this document: Rajesh Kumar and Sujit K Sukumaran, "Value drivers in Oil Companies: An Application of Variance Based Structure Equation Model", Contemporary Management Research, Vol.13, No.1, pp. 31-52, 2017. Permanent link to this document: http://dx.doi.org/10.7903/cmr.16165
Rajesh Kumar; Sujit K Sukumaran. Value drivers in Oil Companies: An Application of Variance Based Structure Equation Model. Contemporary Management Research 2017, 13, 31 -52.
AMA StyleRajesh Kumar, Sujit K Sukumaran. Value drivers in Oil Companies: An Application of Variance Based Structure Equation Model. Contemporary Management Research. 2017; 13 (1):31-52.
Chicago/Turabian StyleRajesh Kumar; Sujit K Sukumaran. 2017. "Value drivers in Oil Companies: An Application of Variance Based Structure Equation Model." Contemporary Management Research 13, no. 1: 31-52.
This study focuses on providing empirical evidence on explanation of alternate dividend theories and determinants of payout policies by examining the GCC market. The study explores the financial determinants of the dividend payout policies by examining 646 dividend intensive firms of the GCC. The results suggest that large firms in GCC tends to have larger retained cash flows and tend to have higher dividend intensity. It can be implied that GCC based firms adopt a balanced and cautious approach regarding future growth opportunities as well as the dividend payout policy. Higher the liquidity and profitability signals higher dividend intensity. GCC firms which are liquid and profitable tend to pay more dividends. GCC firms with higher market valuation tend to pay more dividends. Firms with high growth rates of earnings and assets tend to pay less dividends. Firms with high leverage are riskier and risky firms tend to pay less dividends.
B Rajesh Kumar; K S Sujit. Determinants of dividend policy in GCC firms: an application of partial least square method. Corporate Ownership and Control 2016, 13, 455 -466.
AMA StyleB Rajesh Kumar, K S Sujit. Determinants of dividend policy in GCC firms: an application of partial least square method. Corporate Ownership and Control. 2016; 13 (3):455-466.
Chicago/Turabian StyleB Rajesh Kumar; K S Sujit. 2016. "Determinants of dividend policy in GCC firms: an application of partial least square method." Corporate Ownership and Control 13, no. 3: 455-466.
B Rajesh Kumar; Sourabh Gera; Srijit Saha. Wealth Creation in the Largest Banking Mergers- An Empirical Analysis. Asian Economic and Financial Review 2016, 6, 206 -217.
AMA StyleB Rajesh Kumar, Sourabh Gera, Srijit Saha. Wealth Creation in the Largest Banking Mergers- An Empirical Analysis. Asian Economic and Financial Review. 2016; 6 (4):206-217.
Chicago/Turabian StyleB Rajesh Kumar; Sourabh Gera; Srijit Saha. 2016. "Wealth Creation in the Largest Banking Mergers- An Empirical Analysis." Asian Economic and Financial Review 6, no. 4: 206-217.
Rajesh Kumar. Valuation. Valuation 2016, 1 .
AMA StyleRajesh Kumar. Valuation. Valuation. 2016; ():1.
Chicago/Turabian StyleRajesh Kumar. 2016. "Valuation." Valuation , no. : 1.
The returns of 20 actively traded banking stocks in UAE were analysed during the five and half year period 2010 to mid-2015.The performance of the stocks of banking firms was analysed in terms of yearly average returns, cumulative total returns and holding period returns. The stock prices were obtained from Abu Dhabi Stock Exchange and Dubai Financial Market websites.
Rajesh Kumar; Sujit K S. Wealth Creators in the Banking Sector in UAE during 2010-2015 Period. Asian Journal of Finance & Accounting 2015, 7, 152 -160.
AMA StyleRajesh Kumar, Sujit K S. Wealth Creators in the Banking Sector in UAE during 2010-2015 Period. Asian Journal of Finance & Accounting. 2015; 7 (2):152-160.
Chicago/Turabian StyleRajesh Kumar; Sujit K S. 2015. "Wealth Creators in the Banking Sector in UAE during 2010-2015 Period." Asian Journal of Finance & Accounting 7, no. 2: 152-160.
Rajesh Kumar. Drivers for Wealth Creation in Firms: An Empirical Evidence from Gulf Cooperation Council Markets. International Journal of Economics and Finance 2014, 7, 1 .
AMA StyleRajesh Kumar. Drivers for Wealth Creation in Firms: An Empirical Evidence from Gulf Cooperation Council Markets. International Journal of Economics and Finance. 2014; 7 (1):1.
Chicago/Turabian StyleRajesh Kumar. 2014. "Drivers for Wealth Creation in Firms: An Empirical Evidence from Gulf Cooperation Council Markets." International Journal of Economics and Finance 7, no. 1: 1.
Rajesh Kumar. Determinants of Value Creation of GCC Firms -An Application of PLS SEM Model. Asian Journal of Finance & Accounting 2014, 7, 76 .
AMA StyleRajesh Kumar. Determinants of Value Creation of GCC Firms -An Application of PLS SEM Model. Asian Journal of Finance & Accounting. 2014; 7 (1):76.
Chicago/Turabian StyleRajesh Kumar. 2014. "Determinants of Value Creation of GCC Firms -An Application of PLS SEM Model." Asian Journal of Finance & Accounting 7, no. 1: 76.
B Rajesh Kumar; K Abdul Waheed. Determinants of Dividend Policy: Evidence from GCC Market. Accounting and Finance Research 2014, 4, 1 .
AMA StyleB Rajesh Kumar, K Abdul Waheed. Determinants of Dividend Policy: Evidence from GCC Market. Accounting and Finance Research. 2014; 4 (1):1.
Chicago/Turabian StyleB Rajesh Kumar; K Abdul Waheed. 2014. "Determinants of Dividend Policy: Evidence from GCC Market." Accounting and Finance Research 4, no. 1: 1.
Prem Lal Joshi; Wayne G. Bremser; Ashutosh Deshmukh; Rajesh Kumar. Diffusion of Management Accounting Practices in Gulf Cooperation Council Countries*. Accounting Perspectives 2011, 10, 23 -53.
AMA StylePrem Lal Joshi, Wayne G. Bremser, Ashutosh Deshmukh, Rajesh Kumar. Diffusion of Management Accounting Practices in Gulf Cooperation Council Countries*. Accounting Perspectives. 2011; 10 (1):23-53.
Chicago/Turabian StylePrem Lal Joshi; Wayne G. Bremser; Ashutosh Deshmukh; Rajesh Kumar. 2011. "Diffusion of Management Accounting Practices in Gulf Cooperation Council Countries*." Accounting Perspectives 10, no. 1: 23-53.
This online survey, based on a sample size of 340 responses, was carried out to ascertain public perceptions of the positive and negative aspects of the Indian administrative bureaucratic system (IAS). Only 13% of the respondents were satisfied with the system. The most important positive aspect with respect to the IAS system was the factor of decent living and working conditions, and the most important negative aspect was the tendency to serve their political masters rather than the general public. The most important positive aspect of the lower level bureaucracy was the greater dependence on the junior bureaucrats by their seniors, and the most critical negative aspect was that lower level bureaucrats have no sense of wastage of public money. The more the experience that respondents had with the system, the more negative their perceptions of the system became. The Indian residents held much stronger negative views about the IAS system than their non-resident Indian (NRI) counterparts.
Prem Lal Joshi; Rajesh Kumar. A survey of positive and negative aspects of the Indian administrative bureaucratic system. International Journal of Indian Culture and Business Management 2011, 4, 658 .
AMA StylePrem Lal Joshi, Rajesh Kumar. A survey of positive and negative aspects of the Indian administrative bureaucratic system. International Journal of Indian Culture and Business Management. 2011; 4 (6):658.
Chicago/Turabian StylePrem Lal Joshi; Rajesh Kumar. 2011. "A survey of positive and negative aspects of the Indian administrative bureaucratic system." International Journal of Indian Culture and Business Management 4, no. 6: 658.